Tribunal remits case for fair hearing, emphasizing natural justice principles. Procedural irregularities highlighted.

The Tribunal allowed the appeal, remitting the case back to the CIT(E) for a fresh decision after emphasizing the principles of natural justice and providing a fair hearing to the assessee. The judgment focused on procedural irregularities in the CIT(E)'s decision-making process, stressing the importance of allowing the assessee to establish the genuineness of the trust's activities.

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Issues:
1. Rejection of application for registration under section 12A of the Income Tax Act, 1961.
2. Failure to consider material and evidence by the CIT(E) in proving the genuineness of the trust's activities.

Issue 1: Rejection of application for registration under section 12A of the Income Tax Act, 1961:
The appeal was filed against the CIT(E)'s order rejecting the application of the appellant trust under section 12A of the Income Tax Act, 1961. The CIT(E) dismissed the application stating that the genuineness of the activities could not be established as the requisite details were not filed by the assessee. The CIT(E) observed that despite documents being filed by the assessee, nobody appeared during the hearing dates. The learned counsel for the assessee argued that all relevant documents were submitted before the CIT(E) and that the ex parte order was passed without providing a reasonable opportunity for the assessee to be heard. The Tribunal noted the contradictory stand taken by the CIT(E) and emphasized the principles of natural justice, remitting the case back to the CIT(E) for a fresh decision after providing a fair hearing to the assessee.

Issue 2: Failure to consider material and evidence in proving the genuineness of the trust's activities:
The main grievance of the assessee in the appeal was the failure of the CIT(E) to consider the material and evidence submitted by the assessee to establish the genuineness of the trust's activities. The Tribunal noted that while the CIT(E) acknowledged the filing of documents by the assessee, he also stated that the requisite details were not provided to establish the genuineness of the activities. The Tribunal highlighted the importance of providing a fair opportunity to be heard, as per the principle of natural justice "Audi Alteram Partem." Consequently, the Tribunal allowed the appeal for statistical purposes, emphasizing the need for a fresh decision by the CIT(E) after affording the assessee a fair hearing.

In conclusion, the Tribunal's judgment focused on the procedural irregularities in the CIT(E)'s decision-making process, highlighting the importance of providing a fair opportunity for the assessee to present their case and establish the genuineness of the trust's activities.

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